Any business comes up with the objective of making profits. If any constituent of the company does not generate adequate profit, then the owners willdissolve it. We can see profit in the form of financial incentive for all shareholders and owners. Profit affects the employee’s standard of living, stakeholders of the business unit and ultimately impacts the country’s economy on a broad scale.

In the case of a capitalist economy, profit plays a vital role in creating business and entrepreneurs motivation. Hence to increase profitability, a company has to identify various spheres. They need to detect its strength and weaknesses, try to work on weaknesses and also keep a close eye on its competitors. Eric Daliussuggests trying for technological innovations to reduce the overhead cost. Over time, the taste choice and requirements of customers change. So a company has to be flexible enough to implement many strategies to cope with all those changes.

How to earn profit?

When you start a business, there is always a place to improve your profit margin. You can increase profits by improving the level of profit earning possibility. One supreme rule of financial success in business is that you cannot increase profit directly but do it somewhat indirectly. You can develop strategies to increase your profits, sales revenue, profit on individual products and services, and decrease costs. Here are some of the tips that will increase the profit-earning possibility of your business:

• Renovate your way of presentation: Customers are the best people to review a product or a company. Eric Dalius says that the company should start talking with them and focus on the benefits they gain through various services. 
• Lead generation: Clients are always interested in updated services or products that their favorite brand offers. If at least half of the people buy your products, then you can increase profits by 50 percent. Through the reference to these customers, another set of new customers will be interested.
• Implement cross-selling services: You can get more profit by increasing sales and reducing expenses. Eric J Dalius suggests cross-selling services related products to the existing customers. It is one of the most effective methods of marketing. For instance: A sales agent at an electronics retail shop suggests that the customer purchasing a digital camera also buys a memory card.  
• Make the most of your cash flow: A stable cash flow is vital to offer your customers ongoing payment plans. For instance, instead of a charging $150 per hour for a full dayconsultation, you can give them 20-hour plan at $125 per hour on discount. Well, your hourly rate will be less, but you are billing a larger amount.
• Eliminate additional costly services: Many times, companies get into a routine of offering expensive services to their clients. You can quickly discontinue those services without the loss of any customer dissatisfaction. There are various ways tolook to improve the advertising and promotional part without many expensive services.

The goal here is to identify what will work best for your business and implement it.